The Gap Betweeen GAAP And Non-GAAP In Two Charts

By the magic of pure accounting gimmickry, one-off tom-foolery, non-GAAP shenanigans, and the sterling work of its now-retiring CFO; Facebook has 'managed' to produce twice as much non-GAAP net income as GAAP net income in the last 2 years...

Straight from the social horse's mouth, here is Facebook's Net Income on a GAAP and non-GAAP basis...

Which means, summed across the last 2 years, non-GAAP magic has created 100% more 'pretend' Net Income than real Net Income...

We are sure we do not need to tell you which one of these is used to "value" the company as "cheap"!

And yet is amazing how 'stable' Facebook has managed to keep its non-GAAP operating margins when the real GAAP margins have been so volatile...

But - as we told numerous times on mainstream media channels - you are not buying Facebook on valuations... you are buying growth (or the fact that there is another greater fool with no actual accounting skills willing to buy the stock $0.00001 higher than you are)...

I think it's pretty obvious they stuffed the hell out of the China channel. Why not, the first quarter of the deal they might as well send "extra" product. I think it was to cover up the fact that they missed the iPad # by 3 million - that's a shocking development. Also, from everything I've heard iPhone 6 might not hit until 2015. If true, then tomorrow will just be a gap to get the big boys out and unload on retail

Maybe because of my advanced age...but I've never understood the Facebook "business model".

I realize younger generations use the internet and mobile devices far more than I do, but...What happens to Facebook if it is made essentially obsolete(or just "unpopular") by some new, as yet discovered, "technology". Technology is changing so fast these days.

And when this next financial shitstorm finally happens and the great "reset" begins--What will be the value of all these "social media" companies, including facebook? Will businesses still spend money advertising? Will the fickle public continue to use all these "social media" sites when they will struggle to buy bread?

you are correct...we are too old to understand all this modern non GAAP stuff...we should just die and let the new wizards ply their their magic on this bright new era. Though your heir might like thr gold you left him.

I wanted to discuss fraud in finance which includes Goldman Sachs & IPOs and that included the Goldman assisted IPO of facebook so they blocked me from further posting

"Will the fickle public continue to use all these "social media" sites when they will struggle to buy bread?"

EUREKA!! I'll start a new social media site called BREADBOOK showing rich people enjoying artisan-crafted breads with a fixed footer no matter what page you're on that has a video clip of Marie Antoinette smiling and saying "Let them eat cake!"

But in all seriousness , I'm hearing nonsense like kids needing to learn math in grade 3 and the concern being that the kids can't even read, actually read, to even comprehend what the question is to even answer it . Not just one child or two but all of them in a class . What the fuck?

This is the generation that will try to learn not to be slaves, or not to be robbed by rigged markets? Really?

I can't handle this anymore. Probably part of the idea. Continue with the brainwashing until all the sane people stop their opposition to the system (break the resistance!) or until they go insane and freak out publicly (then we can easily declare them as crazy!).